Marketing Segmentation_ Targeting and Positioning

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					Marketing Segmentation,
Targeting and Positioning
market segmentation
 What is market segmentation? explain its
  nature/features.
 Explain the importance/advantages/need
  for market segmentation?
 Briefly describe the bases of market
  segmentation.
 What is niche marketing? Explain its
  advantages to marketers and to
  customers.
Meaning of Marketing
Segmentation
   Dividing the total market into different
     parts/segments on certain bases &
    exploiting each segment fully for the
  purpose of marketing & sales promotion.
          Market segmentation is a new
    customer-oriented philosophy and is
 consistent with modern marketing concept
         which is consumer-oriented.
Market

Markets consists of buyers & buyers differ in
  one or more respects. They differ in their
 wants, resources, geographical locations,
 buying attitudes and buying practices. Any
 of these variables can be used to segment
                  a market.
Definitions
   Philip Kotler :
           The act of dividing a market into distinct groups of
            buyers who might require separate products and/or
            marketing mixes.
   William J.Stanton :
           Market segmentation is the process of dividing the total
            heterogeneous market for a good or service into several
            segments, each of which tends to be homogeneous in all
            significant aspects.
   John Frain :
           The philosophy of directing products and services of
            specific target groups is termed marketing segments.
Features of Marketing
Segmentation
 Segmentation means dividing total market.
 Objectives of segmentation.
 Facilitates sales promotion.
 Desegregating process.
 Facilitates combination of 4Ps.
 Operates as promising marketing strategy.
 Levels of Market segmentation.
Factors influencing marketing
segmentation
   Better marketing performance
   Appropriate adjustment of marketing mix.
   Introduction of appropriate distribution strategy
   Better service to consumers
   Adjustment with diverse expectations of consumers.
   Suitable designing of products.
   Appropriate price fixation
   Timing of marketing/advertising/sales promotion efforts.
   Facilitates appropriate marketing programmes.
Objectives of segmentation
 To select most suitable market segment.
 To promote sales.
 To make the marketing activity consumer-
  oriented.
 To find out new convenient and promising
  markets.
 To study purchase potential of buyers.
Bases of Marketing Segmentation
(Consumer Market)

   Geographic Segmentation
   Demographic Segmentation
   Socio-economic Segmentation
   Psychographic Segmentation
   Behaviouristic Segmentation
   Segementation as per marketing conditions.
   Segementation as per volume of Purchase.
Bases of Segmentation
(Industrial Goods Market)
 Segmentation as per the features of the
  buyers i.e. industrial users.
 Segmentation as per the type of
  organization.
 Segmentation as per the Geographic
  location of the purchasers.
 Segmentation as per buying capacities of
  customers i.e. industrial users.
Features of a good Segment
 Easily   measurable       Easily   accessible

 Viable   segment          Economic    ability to
                             buy
 Adequately   profitable   Promising demand

 Homogeneous               Availability   of data
   character
                Positive   response
Steps in Segmentation

 Survey of existing market.
 Scrutiny of market information.
 Cluster profiling
 Selection of promising segment
 Finalizing appropriate marketing mix
Advantages of Market
Segmentation
   Facilitates customer-oriented marketing
   Facilitates suitable marketing mix
   Facilitates effective product strategy
   Facilitates the selection of promising markets
   Facilitates exploitation of better marketing opportunities.
   Facilitates selection of proper marketing programme.
   Provides proper direction to marketing efforts.
   Facilitates effective advertising
   Provides special benefits to small firms.
   Facilitates optimum use of resources
Limitations of Market Segmentation
   Too much concentration on few segments is dangerous.
   Rational segmentation is difficult.
   Excessive segmentation leads to fragmentation.
   Expensive exercise.
   Limited contribution in solving marketing problems
   Consumer behaviour is unpredictable.
   Difficult to introduce.
   Miscellaneous limitations of market segmentation.
          Inadequate market information & data.
          Defective/Deceptive variables.
          Changing marketing environment.
          Conservative managements.

				
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posted:2/10/2012
language:English
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